IIROC 2012 strategic plan adds new goals

In terms of boosting investor protection, the plan indicates that it will focus on issues affecting retail investors, and less sophisticated investors generally, both in terms of policy development and enforcement. Specifically, it promises to review the use of professional titles that are designed to encourage investor reliance. And, it says it will also focus on compliance with suitability and due diligence obligations.

The plan says IIROC will undertake consultations with investors and investor advocacy groups in order to better understand their issues. It also pledges to do more in terms of investor education, including promoting its existing services, and developing new educational materials.

As for its other goals, among other things, IIROC indicates that it will work towards the proper balance between principles and prescriptive regulation; that it will refine its performance benchmarks to be more outcomes focused; review portfolio-based margin methodologies; and continue to deal with emerging market structure issues.

It also says it will continue to prioritize enforcement cases involving unsophisticated investors and seniors specifically; identify and mitigate the risks facing systemically important dealers; and, implement a fixed-income trade reporting system.

In terms of containing regulatory costs, the plan says that IIROC will explore ways to bolster its expertise without adding to its staff, possibly by using more contract staff.

“This plan will guide IIROC’s efforts to strengthen investor protection and stakeholder confidence in the integrity, fairness and competitiveness of Canada’s capital markets in a rapidly evolving environment,” said Susan Wolburgh Jenah, IIROC president and CEO.